Posts Tagged ‘income tax’

Americans living in Israel, watch out for this year’s June 30 tax deadline.

The Israel Tax Authority has formally reached an agreement with the U.S. regarding the Model 1 FATCA agreement with the IRS, according to attorney Dave Wolf, of the firm Hacohen and Wolf.

The full details of the FATCA Agreement are yet to be published upon the signing of the FATCA Agreement, but according to the Israel Tax Authority’s spokesman, the agreement contains certain restrictions on the use of information passed to the IRS and relief of reporting for certain institutions.

According to U.S. law, all U.S. citizens — regardless where they live — have an obligation to pay taxes on their worldwide income. In addition, in cases where the aggregate value of all foreign accounts exceeds $10,000 at any time during the calendar year, they also have to report this information on a special form commonly known as the FBAR.

Since July 1, 2013, the FBAR needs to be e-filed before June 30 of the following tax year.

Under FATCA, foreign financial institutions (banks, hedge funds, pension funds, insurance companies etc.) are required to report information to the U.S. tax authorities (the IRS) information about foreign accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.

This means the Israeli financial institutions will have to report to the U.S. government all their clients who are U.S. citizens and/or green card holders, disclosing all these accounts.

This has huge implications for any American living in Israel or abroad who has never reported his foreign accounts or paid taxes on its income to the IRS, and also to some states if applicable (such as NY and NJ).

Individuals have four options with which to comply, according to Wolf, who can be reached at this link for more information.

Bill de Blasio, the current frontrunner in the Democratic primary for mayor, has been running his second television commercial of the campaign, titled “Dignity,” since Monday. Fact checking the ad, Michael Barbaro of the NY Times found it quite misleading. Mr. de Blasio argues he’s the only candidate pledging to end the way the Police Department carries out the stop-and-frisk tactic. The problem with that claim is that his opponents have all, in one way or another, pledged to reform it, too.

Nor is Mr. de Blasio, per his claim, the only candidate proposing an income tax on the rich to pay for education. John C. Liu, the city comptroller, has proposed raising the city’s marginal income tax to pay for after-school programs, among other things.

“Dropping the misleading word ‘only’ from several of his claims, or using it more carefully, would do wonders for the accuracy and credibility of his commercials,” Barbaro concludes.

Bill de Blasio’s exaggerating his role as an advocate for the issues he believes are at the top of voters’ concerns is nothing new. In fact, his record of representing the outer-boroughs, as he now promises not to let down any New Yorker, is far from exhilarating.

Back in 2001, when he first ran for City Council in the 39th district, Mr. de Blasio was examined for mismanagement and controversial ties that had put in question his credentials at the time. “[Bill de Blasio] carries a lot of baggage as well,” The Village Voice wrote in a profile on the race for council.

“De Blasio was elected to School Board 15 in 1999, and his tenure has been rocky. Many public school parents charge that de Blasio was stubbornly supportive of Frank DeStefano, the former superintendent of District 15 who resigned in the winter amid allegations of overspending and mismanagement. Reports first surfaced in the fall of 1999 that DeStefano had begun to run up big deficits, taking himself and other school officials on several expensive junkets costing a total of more than $100,000. One year later the school deficit topped $1 million, leading to the cancellation of a popular after-school reading program while DeStefano maintained an expensive car service.

“De Blasio still defends his decision to stick with DeStefano for as long as he did. “He was a visionary and a great educator, but he was a horrible communicator,” de Blasio says of DeStefano. “I was deeply concerned, but I was not going to make a final decision until I saw the evidence.” In the end, de Blasio says, “he could have made better decisions, but I don’t think the spending was wildly excessive. Both of my parents were victims of the McCarthy era. I do not take lightly the idea of ousting someone. You have to have the evidence.”

“De Blasio has also been linked to the flap over New Square, the Hasidic village in upstate New York that has been mired in pardon scandals. Candidate Clinton assiduously courted the small Rockland community last year, winning the town by the whopping margin of 1400 to 12. Six weeks after the election, Israel Spitzer, New Square’s deputy mayor, met with the Clintons at the White House, where pardons for four New Square civic leaders convicted of fraud were discussed. In January, Bill Clinton commuted their sentences, leading to a probe by the U.S. Attorney’s Office in which several Hillary Clinton campaign aides were called in for questioning. At a Manhattan fundraiser for de Blasio in December, Spitzer made a $2500 donation, the largest permitted under the city’s Campaign Finance Board. De Blasio refused to comment on that matter, including the issue of whether he was questioned by the U.S. Attorney’s Office. De Blasio would only offer this comment: “I’m waiting to hear what’s going to happen with that.”

in 2007 as councilman, Mr. de Blasio was lambasted for not living up to his promises and for a lackluster performance as representative of his district. In a hard hitting piece by a local blogger named “Parden Me For Asking,”Mr. de Blasio was criticized for running a dysfunctional office and keeping himself distracted from the issues that mattered to the neighborhoods he represented, going back to his time he served on the Board of Education before his run for council.